Truth: The color of your car does not affect your rate. The factors that can affect it are your driving record, vehicle's make/model/year/body type/engine size, and credit history.
Myth #2: If I lend my car to a friend and he or she gets in an accident, his or her insurance will pay for the damages.
Truth: Your car is your responsibility. However, your friend's insurance could act as excess if the damages exceed your policy's limit. Also, the accident will go on your record so there is a chance your premium could increase as a result.
Myth #3: Males under the age of 25 pay more for auto insurance.
Truth: It is true that males under 25 pay more than females under the age of 25. However, teenagers and seniors tend to pay more for car insurance because those groups statistically get into more accidents than other age groups.
Myth #4: Even without comprehensive coverage, I'm still covered for theft, windstorms, hail and deer accidents.
Truth: Some drivers believe that if they only purchase collision coverage, which covers damage to your car resulting from driving accidents, that they will also be covered for incidents involving vandalism, hail, animal accidents and fires. The truth is, you need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all of these situations.
Myth #5: If I am a safe driver and have never been in a car accident, I do not need car insurance.
Truth: Some drivers are fortunate enough to avoid accidents altogether. However, car insurance is the best protection you can have in the event of an auto accident, especially if the accident is not your fault. In most states, you are also legally required to have some form of auto insurance or other proof of financial responsibility, and failing to do so can carry strict penalties.